Jägermeister is an iconic brand that is known for being at the centre of consumers’ best nights. Jägermeister is more than just a shot brand; it’s a brand that encompasses memorable moments. That could be at a music festival, at a mate’s house before a big night out or celebrating a momentous occasion. Our brand is synonymous with epic experiences.
Jägermeister is made in Germany from 56 different herbs, blossoms, roots and fruits sourced from all over the world. This blend of ingredients creates a liquid with a distinct flavour that is best served as an ice cold shot chilled to -18C.
Jägermeister was developed by Curt Mast more than 80 years ago and remains a best-selling spirit globally. The pure and natural botanical ingredients are extracted in their raw, unprocessed form through a gentle, weeks-long process of cold maceration to create Jägermeister's distinctive taste. This base, rested in oak casks, then "breathes" for one full year to guarantee a high-quality finish and authentic taste.
How is your brand currently performing?
Our brand is currently performing very well, buoyed by groups of friends being able to get together again after being forced apart for so many months. Spirits sales in convenience, after experiencing significant growth during lock down, are returning to pre-pandemic levels. Jägermeister has continued to perform ahead of category, growing 23.6 per cent over the last 12 months [Nielsen, as on 9.10.21].
Jägermeister is the UK’s No. 1 shot brand and we have some of the most loyal consumers. This was evident over the past 18 months as we saw our consumers seeking out our brand in the off-trade for the Big Night In occasion or before they went out as they celebrated being able to get together again.
How is the spirit market currently performing?
After an initial period of double-digit growth during and immediately after the pandemic, sales of spirits in the off-trade are now at 5.7 per cent [Nielsen], the rate at which they were purchased in impulse has followed a similar pattern, but there’s no doubt consumers are embracing the Big Night In occasion and appreciating the ability to get together again.
Do you have any new product development?
Our newest launch is Jägermeister Cold Brew Coffee, which was introduced in the UK in late 2019 and continues to be discovered by consumers as they look for new and innovative spirits. The coffee category has clear significance with more than 24 million [Kantar w/e 12.07.21] households in the UK buying coffee and seeking out coffee-flavoured products. Jägermeister Cold Brew Coffee, much like Jägermeister, is best served ice cold at -18C and offers consumers an alternative Jägermeister shot with a barista touch.
How are you supporting your brand and NPD?
We have just launched a brand-new national campaign called The Secret is Ice Cold. This new campaign is focused on our perfect serve for Jägermeister and Jägermeister Cold Brew coffee, which is an ice-cold shot. It is encouraging consumers to keep Jägermeister in the freezer as doing this makes the liquid have an even more balanced flavour.
This is one of the biggest campaigns for the brand in the UK for a number of years and will stretch well into next year via Out of home, digital, social channels and experiential. There will also be elements of the campaign that will be seen across the off-trade.
How important are independent retailers to your brand?
Independent retailers are incredibly important to Jägermeister and have become an increasingly important part of consumers’ lives, too: a real hub for communities. Consumers are recognising the value in their local shops and as a supplier, we are focused on supporting our retail customers to help them drive spirits sales. One such example is the focus we put behind our price marked packs, all of which are currently in double-digit growth.
What trends are occurring in the sector?
We are seeing the Big Night In trend continue as well as the resurgence of The Big Night In before the Big Night Out. With that, we have seen notable growth with our priced marked pack range. Our range of PMP formats has performed well, 20cl (+52 per cent), 35cl (+21 per cent) and 50cl (+46 per cent) [Nielsen data to 17.07.21, MAT growth] and therefore has remained a focus for the business throughout the year and this will continue.
PMPs provide consumer confidence assuring them that they are receiving value with their purchase. In addition, the smaller formats offer portability, perfect for picking up on the way out or a night in.
We are also seeing more cocktails at home. As consumers have continued to experiment with making cocktails at home, they have gained confidence in recreating classics like a Mule or an Espresso Martini in their kitchens. While Jägermeister and Jägermeister Cold Brew Coffee are best known as shots, they can also be used to create cocktails at home. The complexity of the liquid offers a great base for a cocktail delivering layers of flavour. With just two or three ingredients, consumers can make a great bar-quality Jägermeister Mule or Jägermeister Cold Brew Coffee Espresso Martini.
In today’s fast-changing retail landscape, Bestway Wholesale is known for making bold moves when necessary. But lately, it’s store arm, Bestway Retail, has been buzzing with fresh ideas, capturing the attention of both the industry and consumers alike.
From pioneering hybrid new store models to spearheading customer-centric strategies, strengthening retailer relation and expanding own brand line, Bestway Retail has been cementing its position as a dynamic player for some time now.
The biggest buzz right now is around their innovative approach of “store within a store”, also known as dual store or hybrid store concept. Introducing back-to-back permutations and combinations of its different symbol groups (Costcutter, Best-One, Bargain Booze, Wine Rack, Select Convenience and Central Convenience) in a new dual store format, Bestway Retail is definitely on to something fresh and intriguing.
Asian Trader got in touch with Bestway Retail Director Jamie Davison, who is said to be the driving force behind Bestway’s recent redefinition of convenience stores.
Davison explained, “Our dual supply hybrid store concept focuses on the different customer demographics and having the right offer and proposition that meets the needs of local customers in that catchment area.
“We believe that our new concept stores define the future of convenience. This innovative and pioneering concept brings together the strength of the Costcutter or Best-one’ convenience offer with the leading beers, wines, and spirits lines available from Bargain Booze or Wine Rack to make a fantastic proposition for both retailers and consumers alike.
“We are proud of our hybrid concept that allows retailers to not only compete, but to thrive and take on all competitors within the convenience market with confidence.”
Daring Duals
Introduced by former Bestway retail director Mike Hollis in early 2022, the inspiration behind this model stems from the thought that no two stores are completely alike.
The first Costcutter-Bargain Booze hybrid store was adopted by Costcutter retailer Peter Patel at his Meopham store in Kent, showcasing a 420 sq ft Bargain Booze section inside his 1,900 sq ft store. The store reported a spike of “166 per cent” in alcohol sales after the refit and rebranding.
Another such dual-branded store in Bolton has also been seeing encouraging numbers since it adopted Costcutter-Bargain Booze model. With two prominent brands displayed outside the store, retailer Kersheaup Vagadia’s store has been seeing a “significant increase” both in footfall and in average basket spend.
What makes this hybrid model so compelling? In an era where personalisation is key, Bestway’s hybrid stores seem to hit the nail with their adaptability and flexibility.
The “marriage of the two brands” means the hybrid stores have an exciting and market leading alcohol offer to complement the leading grocery proposition, Davison said, adding that some dual stores have been boosting store sales by a whopping “220 per cent”.
Under the umbrella of “store within a store” model, Bestway Retail has so far introduced Costcutter-Bargain Booze proposition and Costcutter-Wine Rack model.
Wine Rack hybrid is for a “more premium demographic with its range of wines and Champagnes” while Bargain Booze one targets the “mass market looking for value offerings”, Davison explained.
The first Costcutter Wine Rack hybrid store opened in Guildford in late 2023, a concept that is set to be rolled out wider across the Southwest.
Calling them “a key part of Bestway Retail’s winning formula”, Davison stated that the hybrid stores provide shoppers with “wide fresh and chilled offering, Own Label (Coop, Best-in), wide range of branded groceries, a full suite of Food-to-Go options, exceptional usage of locally sourced Direct to Store Supply Partnerships (over 300), specialist BWS offer,£5 million investment in marketing packages and significant investment in social media channels”.
Davison continued, “Our dual supply hybrid stores were executed by drawing off the extensive knowledge and expertise of colleagues and departments across Bestway businesses, working collaboratively with partners to ensure the store-within-a-store concept delivered the right proposition for the store demographic.”
Bestway Retail has so far completed 10 of the dual-branded conversions. The wholesale giant said it was planning to expand the concept and supply into areas of the UK within which Bargain Booze had not historically operated.
Meanwhile, Davison stated that Bestway Retail is aiming to have “100 such hybrid cum dual stores by the end of 2024”.Bestway Retail’s plans don’t stop there. The group has also struck a long-term partnership with SimplyFresh, allowing SimplyFresh retailers to open dual-fascia stores with Bargain Booze and Wine Rack brands.
With almost 30 years of experience in retail, Davison is clearly a veteran and a seasoned retail expert who knows the business inside out- definitely a perfect person to lead a bold initiative like this.
Starting his career with his own store, Davison joined Costcutter in 1999 where he quickly climbed the ranks to become Business Development Director of New Business. He came to Bestway along with Costcutter acquisition, joining as Business Development Director, a position he has held since 2021.
In current role of Retail Director which he took last year, Davison has overall accountability for the new business and store development teams along with overall responsibility for the support and development of the Best-one, Costcutter, Bargain Booze, Wine Rack brands, along with relationships held with symbol retailers.
Davison told Asian Trader, “My role is focused on engaging with our customers and ensuring my team are supporting and driving our customers plans to grow’. I am ensuring that we continue to develop our retailer engagement and the propositions and services that we offer.”
For a company supporting over 3,000 retail outlets under its core brands, such a commitment to growth is certainly no small task.
Meanwhile, Bestway Retail’s renewed focus on its symbol retailers, driven by Davison, is now starting to show results. The numbers are speaking for themselves.
Davison said, “Average weekly purchasing figures from new hybrid group of stores is nearly double the average of a non-hybrid Costcutter, Bargain Booze or Wine Rack retailer. Rebate being paid back to a hybrid retailer by Bestway is +40 per cent vs the average paid to non-hybrid Costcutter which demonstrates loyalty.”
The other encouraging figures reported at dual stores are “3 per cent margin growth as well as margin rate improvement, 40 per cent improvement in footfall, 48 per cent increase in weekly sales and +11.7 per cent average basket spend”, Davison informed.
Bestway’s focus isn’t limited to its hybrid stores. The company has also undertaken a major facelift for its Best-One brand, refreshing the way these stores are presented, ensuring a vibrant and modern look and feel is carried out both internally and externally.
Davison said, “The main focus of this modernisation was to overhaul, focus on key promotions for low demographic areas and the introduction of an up weighted own label presence.”
The pilot of revamped Best-one, that opened near Bristol, boasts of “refreshed 3D-halo, back lit fascia and new vinyl’s that reflect what the store is selling”. The refreshed Best One model also has “stronger value message, promotion gondola, twice dump bins, floor stacks and dedicated own label range in “Best-in bay”.
“Customers love what we have done, and they are supporting us with their pounds,” Davison said.
Buzz has it that there is another hybrid model brewing, which could see a Bargain Booze store sited within a Best-one, or vice-versa, depending on whether the store in question is grocery or alcohol-driven. The concept would likely replace the current Select Convenience format.
Retailer relations
To strengthen its relationship with retailers, Bestway has been developing retailer engagement programmes for its 3000 retailer outlets.
Davison told Asian Trader, “Relationships are at the heart of all we do, and we want to continue to support that. We have introduced our retailer forums across all our brands; we are holding retailer regional meetings.”
Bestway’s retailer showcase held in May was the “biggest and the most successful” the group has seen to date, with the attendance of more than 500 retailers.
He pointed out, “We also make sure to engage with suppliers and develop partnerships and networking opportunities for our colleagues. Throughout the year we plug in opportunities for social events as well to strengthen the relationship building with retailers and suppliers. Every end of the year we come together in November to celebrate our colleagues, our retailers and our valued supplier partners as well at our Bestway Awards.”
Davison also credited the field teams, highlighting their role in constantly supporting retailers.
He said, “Our field team helps retailers understand their key catchment area, the trade zone that they operate in, to be able to compete in their specific location and bring the relevant ranges, fulfill the missions of the various shopper personas and bring their shopper a key value offer and maximize the opportunities out there.”
While Bestway is undoubtedly focused on growth, it hasn’t lost sight of the challenges facing the convenience sector.
Davison informed, “We have developed a very strong own label proposition to bring value to shoppers impacted by the cost-of-living crisis. Having three principles in mind – margin, value and quality – the range features almost 200 lines.”
Retail crime is another pressing issue.
He said, “We are working closely with our retailers and use our forums to ensure we listed to the issues and provide support with solutions. With Dawood Pervez (managing director at Bestway Wholesale) being a chairman of FWD, we also seek support from the rest of the industry as well where applicable.”
As the retail landscape continues to shift, Bestway Retail is also preparing for the impact of new legislative restrictions, such as the disposable vape ban and possible Deposit Return Scheme (DRS) regulations.
He said, “We acknowledge the importance of all these policies and respect them and are working with our customers to transition and mitigate any risks. For example, when it comes to the HFSS regulations, we have been developing our Good Food project for over two years now, with the objective to bring healthier options to our customers.”
Future is here
Davison’s extensive experience in convenience retail, combined with his deep understanding of the industry, gives him a unique perspective. His advice to independent retailers is simple yet profound that “one size or model does not fit all” and it is important to get to know the customers and adapt the propositions to tailor serving specific needs.
Looking ahead, Davison seems laser-focused to further develop dual-branded stores, ensuring “there's a perfect fit for everyone”.
He told Asian Trader, “Our focus is on creating dynamic, modern, and customer-centric spaces that cater to evolving shopper missions.
“We will tailor solutions to the unique needs of our retailers and optimise our Shopper First program to target key audience demographics to help pinpoint the right offers. Whether a bustling city centre outlet, community store or a cosy neighbourhood shop, we've got it covered.”
In many ways, Bestway Retail’s hybrid store model encapsulates the group’s as well as Davison’s philosophy- flexibility, agility, adaptability, personalisation and local relevance. As the retail landscape continues to evolve, it’s clear that Bestway is not just keeping pace but is ahead of the curve. The future, it seems, is already here.
Becky Allan, Marketing Manager at snack brand Takis, tells us how the super-fiery chilli flavours of this market-conquering phenomenon are the secret of its hot success
Can you please give an overview of your brand?
Takis first made a name for itself when it went viral in the US, with global sales of the popular rolled tortilla chips surpassing $2bn. Every Takis product is known for its fiery flavour, intense crunch and unique tortilla roll, providing consumers with an exciting and unmatched snacking experience.
The UK convenience sector can now enjoy the brand’s three SKUs: the best-selling Fuego flavour provides a blast of flaming hot chilli pepper and tangy lime, earning it an “EXTREME” rating on the brand’s Heat Meter. Takis’ Volcano variant meanwhile offers an intensely cheesy flavour with a cheeky fiery kick. The newest SKU, Dragon Sweet Chilli, ensures every bite is filled with a spicy sweet chilli flavour combination that tingles your taste buds. Marked as “Hot” on the Takis Heat Meter, these hot and spicy corn chips are sure to thrill true chip lovers.
How is your brand currently performing?
Takis is outperforming the wider snacking market with value growth of +8.1 per cent, making up 18 per cent of the market1. We are currently the fastest selling in the top 50 in the snacking category, driven by our increased distribution (+24 per cent YOY) 2.
When it comes to the convenience sector specifically, Takis is worth over £13 million and is in growth, seeing sales of over 6.1m packs a year3. We see no signs of this slowing, as Takis continues to cater to those looking for an intense snacking experience. In fact, our brand has a 23 per cent market saturation4, helped by our range of formats including the new PMP grab bags. This is a launch we’re particularly proud of, as it broadened our availability into the convenience channel – an area crucial to the snacking market.
How is the category currently performing?
The total market is proving a big profit driver for retailers, worth a huge £2.14bn, seeing 1.46bn packs sold a year5. When it comes to the tortilla sub-category, the convenience channel is seeing growth of +4.3 per cent year-on-year6. In the convenience sector, we’re seeing sharing formats grow at the quickest rate: +14.4 per cent year on year7!
The growth of the market is something that excites us here at Takis – there’s room to continue to expand and innovate, helping retailers provide snacking offerings that cater to a range of shopper wants and needs. There are lucrative profit opportunities to be had by retailers, and we’re here to help them make the most of them.
How are you supporting your brand and NPD?
This year has been a particularly exciting one that has seen us make significant headway in terms of establishing ourselves as a major player in the snacking category. With a marketing focus that sees us go where the consumer is, we are focusing our efforts on where Gen Z spend most of their time – social media. TikTok and Instagram are both incredibly important platforms; they enable us to not only be visible but build a community of fans and followers that we can engage with.
This clear, single-minded focus delivered two milestone for the year, the first being the launch of our third SKU into the market in April – the inimitable Dragon Sweet Chilli. This August then saw us launch Takis into the convenience channel, following a six-month stint exclusive to grocery, with a PMP offering that is bespoke to this sector. In a UK first for our brand, Takis’ three SKUs are available in PMP format, allowing retailers to capitalise on the market that is growing at +17.6 per cent value and +6.8 per cent units year-on-year8. Available to order via Booker Wholesale UK, Fuego, Volcano and Dragon Sweet Chilli are available in a 55g pack, price marked at £1.25.
How important are independent retailers to your brand?
Independent retailers are hugely important to our brand – and we are thrilled to have launched our products into this sector. Our core target audience is Gen Z – we know that they are the super snacking generation and more likely to buy on impulse, with independent retailers being perfectly placed to leverage this. When it comes to shopper attitudes to snacking, bold and strong flavour choices are dominating purchase decisions. While planned purchases lend themselves to “weaker” flavours, impulse purchase (57 per cent of shoppers buy bagged snacks at least once a week9) is where intense flavours, such as chilli and paprika, have their moment to shine10.
What trends are occurring in the sector?
The “Need for Heat” is not showing any signs of stopping, as 33 per cent of snackers are looking to explore new intense flavours in the category11, suggesting a continued interest in spicy flavour profiles. In fact, 35 per cent of consumers say they buy intensely flavoured crisps and bagged snacks with crunch because they like spice, 30 per cent because they like intense flavours and 33 per cent because they like to explore new flavours. This makes clear that NPD around intense flavour will be key to maintaining consumer interest.
Describe your brand in three words
Bold. Fiery. Daring.
1 Circana – Total Market – Total Crisps, Baked & Snacks – L52 w/e 12/05/24
Marketing Manager Amy Heap talks about the c-store heritage brands that set KP Snacks apart from the competition and explains why they are doing so well
Can you please give an overview of your brand?
At KP Snacks, we offer a wide-ranging portfolio of crisps and snacks. One aspect of our range that sets us apart is our selection of classic Heritage Brands. With Nik Naks, Wheat Crunchies, Space Raiders, Roysters, Discos and Frisps, we’re tapping into the growing consumer demand for “Modern Nostalgia”, maintaining the positive associations our consumers have with these brands and making sure they remain relevant in today’s market. As well as being great tasting, fun and familiar, these products offer great value to shoppers with unique and flavourful brands that consumers trust and love.
How is the range currently performing?
Our unique brands are delivering sustainable growth to the Convenience channel. Last year, Nik Naks and Discos were in the UK’s top ten fastest-growing Food & Drink brands, with Wheat Crunchies growing by over 50 per cent1. Space Raiders is also driving sales within the channel, growing at +4 per cent2. Meanwhile, Roysters T-Bone Steak £1.25 PMP is outperforming the PMP segment in both volume and value.3 These unique brands have become staples of the Convenience & Impulse channel, offering consumers a mix of value, familiarity, quality and great taste.
How is the market currently performing?
Bagged Snacks is a strong and resilient category with huge scale, now worth over £4.3bn4 and growing. At KP Snacks, we have a track record of strong performance with our Heritage Brand portfolio currently growing at +6 per cent5.
Now more than ever, consumers are looking for products which are considered to offer good value for money, with retailers saying customers are looking for value and deals6. While our range offers everyday value it also bridges the gap between nostalgia and relevance, making them hugely popular.
How are you supporting your brand?
We’ve recently launched an exciting new £45,000 retailer incentive for our Heritage portfolio. Running until October 13, the new giveaway offers retailers the chance to win one of 90 £500 cash prizes by purchasing cases of Discos, Space Raiders, Nik Naks, Roysters, and Wheat Crunchies.
The incentive showcases our range and the critical role it plays within the Bagged Snacks category as a staple of the Convenience & Impulse channel. We’re also distributing new POS kits to drive standout of Heritage brands in-store and help increase retailer sales.
Our new POS package features the strapline “Extra Taste, Extra Fun and Extra Sales” and includes vibrant dump bins, shelf wobblers and shelf strips to help retailers capitalise on the strength of KP Snacks’ Everyday Value brands, delivering stronger customer visibility to drive sales growth.
We also recently launched brand new packaging across our Discos range, giving this classic brand a more contemporary feel. With vibrant colours and a dynamic design, the new packs deliver a more impactful standout on shelves.
Do you have any new product development?
We are committed to bringing innovation to the category with our NPD strategy, anchored in insight and delivered in a range of formats to bolster retailer sales.
We continue to innovate across our Heritage Brands range to deliver further differentiation.
We recently launched Nik Naks Rib ‘N’ Saucy in Grab Bag format, reintroduced the sought-after Nik Naks Scampi and Lemon in a £1.25 PMP and launched Wheat Crunchies Spicy Tomato, driving consumer interest and sales.
Most recently, we launched Discos Prawn Cocktail £1.25 PMP, capitalising on the considerable growth of Prawn flavours in the UK market. Worth £154m and growing +16 per cent YOY7, Prawn flavours are increasingly in demand.
It’s not just our products we’re innovating – we’re constantly reviewing and improving our packaging in line with our commitment to use as little plastic packaging as possible. This year we reduced plastic packaging across our Discos, Roysters and Frisps six-packs by 35 per cent by implementing new flow wrap equipment. Equivalent to 100 tonnes of packaging saved annually and 620 fewer lorry journeys, our packaging innovation helps to minimise our environmental footprint.
How important are independent retailers to your brand?
Retailers are hugely important to our brands and we are committed to delivering great value to our consumers, while also providing the right products in the right formats to drive sales for our retail partners and incremental category growth.
Heritage brands are a critical part of core ranging, with these products in particular appealing to consumers looking for great value snacks and representing brands that are iconic and well-loved in their own right.
Our new incentive is specifically designed to reward retailers and help them boost their sales by leveraging familiar brands which deliver everyday value and strong consumer appeal.
What trends are occurring in the sector?
PMP formats have seen significant growth in recent years and will stay increasingly relevant as the cost of living remains high. PMPs offer consumers great value for money, with clear pricing reassuring shoppers that they’re getting a good deal. Food to Go missions are also on the rise at +15 per cent8.
We have an extensive PMP portfolio, offering a range of tasty snacks at a variety of prices to suit all budgets and occasions. Our smaller format PMPs include the UK’s number one best value brand, Space Raiders, in a 40p PMP, alongside Discos, Skips and Wheat Crunchies at 50p with Nik Naks Nice ‘N’ Spicy and Nik Naks Rib ‘N’ Saucy available as £1.25 PMPs.
Describe your brand in three words …
Great-tasting, fun, trusted.
1 Nielsen IQ, Total Convenience Bagged Snacks Report, Total Volume, MAT 13.07.24
2 Nielsen IQ, Total Convenience Bagged Snacks Report, Total Volume, MAT 13.07.24
3 Nielsen IQ, Total Coverage, Total Value, MAT 13.07.24
4 Nielsen IQ, Total Coverage, Total Value, MAT 13.07.24
5 Nielsen 52 w/e 10/08/24
6 Figures quoted from KP Snacks/ ACS survey of 28 retailers, August 2022
7 Category – NielsenIQ, Scantrack, 52 w/e Oct 2023 - Total Coverage
As Scandinavian Tobacco Group enters the next gen arena with its new XQS nic pouches, Prianka Jhingan, UK Head of Marketing at STG, explains how the best things come in small packages
Can you please give an overview of your brand
Earlier this summer STG UK entered the next gen nicotine category with the launch of XQS pouches. This new range has been created in Sweden, the home of nicotine pouches, and has been available from May onwards, competitively priced at just £5.50. XQS has launched in a range four great flavours with a variety of strengths: Tropical, Blueberry Mint, Cool Ice and Arctic Freeze. While the Tropical and Blueberry Mint variants give users a fruity burst of flavour, the Cool Ice and Arctic Freeze variants offer minty flavour and an icy, cooling sensation. All four variants come in fully recyclable packaging and smaller-sized pouches for a better fit.
How is your brand currently performing?
It’s very early days, but the anecdotal evidence we’re getting from retailers and consumers is already very positive. We really believe in this brand and think it genuinely brings something different to the market, and that’s for two specific reasons. Firstly, and most importantly, XQS is all about high quality and long-lasting flavour which we feel confident is better than the other brands out there. We know once consumers try it, they love it! Secondly, it would be the uniquely smaller-sized pouches which ensure a perfect and delicate fit under the lip.
How is the nicotine pouch market currently performing?
Nicotine pouch sales are really gathering pace in the UK, with the category now worth just over £90m* in annual retail sales – and this figure doesn’t include sales taking place online. This is because many adult smokers have been transitioning over to next gen products such nicotine pouches over the last few years, so they have become an increasingly important part of the mix for convenience retailers. And with the upcoming disposable vape ban due in April next year, this is likely to mean many more consumers will be looking for alternative next gen products, so we’d advise retailers to talk to their regular customers to let them know what their options are. Nicotine pouches like XQS are likely to see a surge in sales as they offer consumers a very credible and attractive alternative due to their exciting flavours, discreet nature and ease of use.
I think in general nicotine pouches tend to be consumed by a mix of customers. Almost certainly the largest group will be transitioning smokers who are moving away from tobacco and into the next gen nicotine category. But there are also other groups who are enjoying nicotine pouches too, whether they be young urban professionals, trend setters or more socially conscious young adults. For XQS, we believe our sweet spot is targeting those young urban professionals and trend setters who are existing pouch users and value taste, quality and are willing to try new innovative brands.
How are you supporting your brand and NPD?
Firstly, from a trade perspective, our growing sales force is connecting with thousands of convenience retailers on their visits this summer to talk them through XQS and explain what merchandising and point-of-sale materials are on offer to help maximise sales. To complement that, we also have a series of educational wholesale depot days planned throughout the remainder of the year, when we will visit high-footfall wholesalers to showcase XQS, talk about our strong brand heritage and talk the visiting retailers through the uniqueness of the product. So, watch out for those!
Then, to help drive consumer demand we also have a major summer activation program underway to get “cans to hands” and help bring XQS into the minds and pockets of thousands of consumers in a variety of ways. This will include an exciting mix of sampling at festivals, city sampling takeovers in major cities across the UK, office-drops and social media advertising.
How important are independent retailers to your brand?
Independent retailers are very important, as a large percentage of pouch sales go through them, so our sales reps are working hard to give retailers the information and sales material they need to ensure the launch of XQS is a success in their stores. As it’s a new entry into the category which consumers may not yet be aware of, XQS is best cited in multiple locations in-store. We currently offer three different display solutions to accommodate varying store space availability and to ensure maximum visibility to those entering the store. We’re confident the bold and colourful branding really stands out in store which, along with the prominent RRP communication, should prove attractive to existing nicotine pouch users.
What trends are occurring in the sector?
Nicotine pouch users are motivated by flavour more than anything, which is one of the reasons we feel so confident in the future for XQS. The predominant flavour is definitely mint but fruity flavours are also proving popular with consumers. Aside from flavour, there is also a move towards stronger variants with nearly three quarters of sales classed as “strong” or “extra strong”.
Describe your brand in three words …
Disruptive, Irresistible, Bold
*IRI Marketplace, Value and Volume sales, Time Period: Apr 2024
Ashley Taylor, Sales & Marketing Director at Accrol, tells us about that most vital and versatile household product, kitchen roll, and why Magnum is the very best one to stock
Can you please give an overview of your brand …
Kitchen roll remains a staple in many UK households, with over 79 per cent of consumers using it regularly [Mintel Household Paper Products UK 2023 Report]. Most commonly used to mop up spills, wipe surfaces, and for general cleaning purposes around the house, users seek high absorbency and strength to achieve an exceptional hygienic clean. This is exactly what Magnum delivers.
Magnum offers a range of household solutions, including Magnum Super, a great value two-ply everyday kitchen towel; Magnum Ultra, a strong three-ply kitchen towel that’s absorbent yet economical; and Magnum Mighty, a premium, super-strong three-ply sheet perfect for heavier household tasks.
Remaining competitively priced and at a quality the consumer wants, Magnum kitchen roll is manufactured from sustainably sourced materials (FSC & 50 per cent PCR), made using 100 per cent renewable energy and packaged in 100 per cent recycled materials.
How is your brand currently performing?
As the UK’s No.4 kitchen roll brand [Neilsen Scantrack, 9 March 2024], Magnum is performing really well as it continues to grow, securing listings in major multiples, wholesalers, and discount retailers. The brand has significantly increased its market presence, driven by consumers seeking exceptional value (Great Quality at an affordable price) and responsibly made products at lower price points, which is resulting in exceptional loyalty to the brand. We continue to have retail partners add to their current listings.
Over the last 52 weeks, Magnum has grown by over 51 per cent [Neilsen Scantrack, 9 March 2024, L52w] and continues to experience a positive trend in market traction.
How is the tissue market currently performing?
Like many other categories we have seen a shift in consumer behaviour in the last two years due to the cost-of-living crisis. Consumers are extremely value focused (Great Quality at affordable price). This has meant many have been unable to afford the market leading brands.
Kitchen Towel is in an “Opt-in Category” and Magnum has been well placed to support the change in consumer behaviour by offering right price points and value propositions to meet the daily needs of their customers.
Do you have any new product development?
At the beginning of the year, we introduced Magnum Ultra Double Roll in price-marked packs to wholesalers nationwide. By doubling the number of sheets per roll, we have significantly decreased packaging, increased pallet capacity, and minimised the demand for pallets and trucks. These improvements have collectively reduced our overall environmental impact and CO2 emissions.
We continue to look for opportunities for new product development to further enhance our offerings and meet the evolving needs of our customers.
How are you supporting your brand and NPD?
When it comes to bringing our products to market, we recognise the importance of engaging with both retailers and consumers to ensure we offer the right product at the right price. Our commitment lies in leveraging our research and insights to shape our product offerings. Based on these findings, we’re excited to introduce new variants that align with the needs and preferences of our customers.
How important are independent retailers to your brand?
Independent retailers are of great importance to our brand, and we will continue to invest heavily in this sector. We have been working closely with wholesalers nationwide to ensure they stock Magnum, so that it is easily accessible to all independent retailers.
We believe shoppers should have access to great products at a great price from their local convenience retailer. By making Magnum widely available, we’re confident that independent retailers can offer their customers a great value daily essential that can compete with market-leading brands.
Additionally, we prioritise supporting our customers with exceptional customer service, which is reflected in our strong ratings from our customers.
What trends are occurring in the sector?
We know through our research that there are different consumer-drivers when choosing kitchen roll. While absorbency, strength, and hygiene remain essential, factors such as price, sustainability, and convenience are becoming increasingly influential in consumer decisions. Therefore, for convenience retailers, there’s never been a better time to ensure affordable, quality brands, like Magnum, are on shelf.
Magnum kitchen roll is available in price-marked packs which effectively communicates great value to shoppers whilst also allowing retailers to maintain strong margins in a cost-conscious market. Additionally, we’re proud to be a sustainably minded brand, recognising that customers seek excellent value without compromising the planet. We take our responsibility to the environment seriously and believe that sustainability should be affordable for everyone.